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Epic Research
NEW YORK (Reuters) – Global stocks rose to 3-1/2 month highs o n T uesday and the euro jumped to a seven-week peak against the U.S. dollar on hopes the European Central Bank will soon start buying Spanish and Italian bonds to contain the debt crisis.
Spanish borrowing costs fell and Portuguese government bond yields declined to levels seen before Lisbon agreed to a bailout deal in May, 2011, with traders citing media reports that the ECB was drawing up detailed plans about bond-buying.
The perception of declining risks from the euro crisis has been a major factor behind recent equities gains. Wall Street stocks earlier climbed to four-year highs before surrendering gains to trade little changed on the day.
Uncertainty remained high and investors were concerned the ECB’s condition that troubled countries ask for help from the euro zone’s rescue funds before turning to the central bank may mean that the Spanish crisis could get worse before it gets better. Still, optimism over eventual ECB action boosted sentiment.
Spanish borrowing costs fell and Portuguese government bond yields declined to levels seen before Lisbon agreed to a bailout deal in May, 2011, with traders citing media reports that the ECB was drawing up detailed plans about bond-buying.
The perception of declining risks from the euro crisis has been a major factor behind recent equities gains. Wall Street stocks earlier climbed to four-year highs before surrendering gains to trade little changed on the day.
Uncertainty remained high and investors were concerned the ECB’s condition that troubled countries ask for help from the euro zone’s rescue funds before turning to the central bank may mean that the Spanish crisis could get worse before it gets better. Still, optimism over eventual ECB action boosted sentiment.